How Does Online Credit Counseling Work

Posted on January 6, 2016 By

How Does Online Credit Counseling WorkOnline credit counseling is a streamlined process for helping cardholders estimate their consolidated payment and predict eligibility for creditor benefits through a debt management plan. Many credit counseling agencies provide an online credit counselor program for cardholders that cannot visit in person, or whom prefer to

It allows you to get a snapshot of your financial situation from the privacy of your home and at any time of day. You do not have to worry about driving across town or other constraints on your time. With online credit counseling programs, you can save your information and come back later that day to complete it. In addition, you can even make changes to it to see how changes in your financial situation could affect your ability to manage your debt

You can print out your financial analysis and you can enroll directly into a debt management plan. With all of the benefits of online credit counseling, there are many shortcomings.

You Cannot Ask Questions

Most clients have questions that are best fielded by an Accredited Financial Counselor. No two situations are the same, and the response may be different for you based on your own unique situation.

There are certain criteria that must be met in order to meet eligibility requirements for certain creditors. These requirements can differ from one creditor to another. A credit counselor can discuss those guidelines with you, but the online credit counseling process does not generally support it.

For example, one common mistake made by debtors online is that they do not put in a complete or accurate budget. You might see an error message showing that you may not qualify due to too much of a budget surplus or if you are clearly in the negative. A counselor can work with you to sort it out and make sure that it is accurate. If you do not speak with a counselor, you may incorrectly believe that you do not qualify for benefits when you could be an ideal candidate.

Additional Benefit of Online Credit Counseling

If you are determined to find out where your financial situation stands on your own, then using an online credit counseling program is a good place to start. You can evaluate various aspects of your situation on your own.

Once you have utilized the program, you should call the agency directly to confirm the summary of your situation and to ask any lingering questions. The goals, after all are to find out how to rebuild your credit and eliminate debt. Online credit counseling programs can help you determine the debt repayment figures, but they cannot address your specific credit needs. An Accredited Credit Counselor can help you do that.

Kenneth Long began his public service with nonprofit organizations in 2001. He has since conducted workshops teaching other nonprofit executives how to integrate credit counseling with volunteer tax preparation programs. Long is a graduate of the University of North Carolina at Chapel Hill and received his Certificate in Nonprofit Management from Duke University.

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